Director / shareholder disputes

A healthy business is one in which shareholders and directors can disagree and challenge each other. Our team does everything we can to support that. However, sometimes disputes arise. At Talbots Law, we can help you successfully manage any breakdown in relationships so that it does not damage your business, supply chain or business reputation.

Holding a company directorship is a challenging position, carrying much responsibility. Shareholders can be demanding. At times, this leads to differences in opinion. Disputes between shareholders and directors can arise over the business’ future strategy. Dividends and bonuses can cause disagreement.

If there are family members or close friends involved, this can lead to questions about dealings between themselves, the business and third parties. There are also statutory obligations that need to be observed by anyone in office.

Whatever the cause of conflict, finding a solution, and quickly, is important. The commercial solicitors at Talbots Law will outline your options and agree a strategy with you.

Why should I choose Talbots Law for director and shareholder disputes?

The company solicitors at Talbots Law have a passion for business. We understand the pressures and frustrations directors and shareholders can face when trying to grow a profitable organisation. . From large multi-national corporations to SMEs to family-run corner shops, we have helped large and small organisations resolve disputes between directors and shareholders, quickly, competently and effectively.

At Talbots Law, we are business people first, lawyers second. In situations where there is a deadlock, we will work diligently with all parties to the dispute to ensure it is resolved speedily, allowing normal business to resume. Our experience in business law and ability to collaborate with internal and external teams skillfully and confidently, is the reason why we are the preferred law firm for businesses in the West Midlands.

Alternative Disputes Resolution

Wherever possible, our team will try and procure an agreement between directors and shareholders outside the courtroom.

We have a vast experience of using mediation to discuss the situation that caused the dispute openly, to find remedy rather than fault. If an agreement is reached in mediation, you save yourself time, costs and can move on with achieving your commercial goals.

Mediation will only be successful if all parties are willing to listen, cooperate and have the motivation to reach an agreement. However, we know that this isn’t always possible in a commercial situation. When things get complicated and the dispute escalates, we’ll stand by you. In this case, our company law solicitors will fight tooth and nail to secure your desired outcome and protect the best interests of the organisation.

Litigation

If legal action is required, we will explain the consequences. Our professional advice will help you decide the best option as we'll explain the likely outcome, expected timescales and we'll ensure that you know the likely costs.

If it is in your interests, we will fight for settlement as early as possible; however, if court proceedings are inevitable, we will engage the most experienced counsel on your behalf.

Director & shareholder disputes FAQs

What are main causes of disputes between directors and shareholders?Communication breakdowns are often the cause of disputes between directors and shareholders. Other reasons include:

The director breaching his or her duties;

Disagreements over the strategy and management of the company;

Disagreements over the payments of dividends and/or bonuses;

Exorbitant director’s salaries or bonuses;

Directors having conflicts of interests;

Shareholder being excluded from decision making;

A breach of the Articles of Association or Shareholders’ Agreement.

How can I avoid disputes occurring in the first place?The easiest way to avoid disputes occurring is to have a clear, comprehensive Articles of Association and Shareholders agreement in place which include a disputes resolution process to be followed should a disagreement arise.

It is always best to resolve shareholder/director disputes as soon as possible. Speak to the business solicitors at Talbots Law for advice today on 0800 118 1500.

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At Talbots, we like to keep things simple but there are times when even we have to observe certain legal niceties. For your information, we’re authorised and regulated by the Solicitors Regulation Authority (no. 596234). And our trading name is Talbots Law Limited, company number 8058015, registered office 25/27 Hagley Road, Stourbridge DY8 1QH. A list of directors is available from any office, and finally, we do not accept service by email. If we contracted online, and fall into dispute, you can use the EU Online Dispute Resolution Platform. Our email address is info@talbotslaw.co.uk. Legal niceties over.

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